Toth v. Callaghan

• Decision Date: 05 February 2014
• Docket Number: Case No. 12–CV–11700.
• Citation: 995 F.Supp.2d 774
• Parties: Christie TOTH, et al., Plaintiffs, v. Edward CALLAGHAN, et al., Defendants.
• Court: U.S. District Court — Eastern District of Michigan

995 F.Supp.2d 774

Christie TOTH, et al., Plaintiffs,

v.Edward CALLAGHAN, et al., Defendants.

Case No. 12–CV–11700.

United States District Court,

E.D. Michigan,

Southern Division.

Feb. 5, 2014.

Mark H. Cousens, Mark H. Cousens Assoc., Southfield, MI, for Plaintiffs.

Christopher W. Braverman, State of Michigan, Department of Attorney General, Dennis J. Raterink, MI Dept. of Attorney General, Lansing, MI, for Defendants.

OPINION AND ORDER DENYING DEFENDANTS' MOTION FOR SUMMARY JUDGMENT (Dkt. 29) and GRANTING PLAINTIFFS' AND INTERVENOR'S MOTIONS FOR SUMMARY JUDGMENT (Dkts. 32, 34)

MARK A. GOLDSMITH, District Judge.

I. INTRODUCTION

This is a civil rights case brought under 42 U.S.C. § 1983 with pendent state law claims for violations of the Michigan Constitution. The initiating Plaintiffs are Christie Toth and the Graduate Employees Organization (“GEO”), a labor organization; the Intervenor Plaintiff is the Board of Regents of the University of Michigan. The initiating Plaintiffs and the Intervenor Plaintiff are collectively referred to herein as “Plaintiffs,” unless otherwise specified.¹ Plaintiffs challenge the Michigan Legislature's enactment of Public Act 45 of 2012 (“PA 45”), which effectively barred the Michigan Employment Relations Commission (“MERC”) from proceeding with an administrative hearing that was to determine whether certain graduate student employees should be recognized as public employees with rights of collective bargaining at the University of Michigan. Plaintiffs allege that PA 45 violates the equal protection guarantees of the federal and Michigan Constitutions and that the manner by which the Michigan Legislature passed PA 45 violated Article IV, § 24 of the Michigan Constitution (the so-called “title-object” provision, which includes the “change-of-purpose” clause at issue here). All parties filed motions for summary judgment (Dkts. 29, 32, and 34). The motions have been fully briefed and oral argument was held on June 27, 2013. For the reasons set forth below, the Court grants summary judgment on the title-object claim in favor of Plaintiffs, denies Defendants' motion for summary judgment, and declines to rule on the equal protection claims.

II. BACKGROUND

A. Proceedings Before MERC

In 1981, MERC determined an unfair labor charge brought by GEO on behalf of three groups of graduate student assistants at the University of Michigan: graduate student research assistants (“GSRAs”), teaching assistants, and staff assistants. 1981 MERC Lab. Op. 777 (Dkt. 34–1). GEO argued that all three categories of graduate student assistants were “public employees” under the Public Employment Relations Act (“PERA”), Mich. Comp. Laws § 423.1 et seq., and were thus entitled to collective bargaining rights. Id. at 780. The University of Michigan opposed GEO's position. Id. MERC held that teaching assistants and staff assistants were public employees under PERA, but found that GSRAs were not public employees. Id. at 782.

In 2011, the University of Michigan, through its Board of Regents, adopted a resolution recognizing GSRAs as public employees and supporting their effort to organize. 5/19/11 Resolution (Dkt. 29–3).² In doing so, the resolution provided GSRAs with the same status as Graduate Student Instructors (“GSIs,” formerly known as “teaching assistants”) and Graduate Student Staff Assistants (“GSSAs,” formerly known as “staff assistants”). GEO also petitioned MERC to reverse its 1981 ruling that GSRAs were not public employees under PERA. MERC denied GEO's petition. MERC Op. No. R11 D–034, 2011 WL 4642545 (Sept. 14, 2011).

GEO then moved for MERC to reconsider its decision. The Michigan Attorney General and a student group opposed to graduate student unionization filed motions to intervene. MERC Op. No. R11–D034, 2011 WL 7063731 (Dec. 16, 2011). MERC denied the motions to intervene, granted GEO's request for reconsideration, and ordered an administrative law judge (“ALJ”) to conduct hearings to determine whether circumstances had changed regarding the status of GSRAs, such that MERC should reverse its 1981 decision. Id.

Prior to the ALJ conducting the administrative hearing, the Michigan Attorney General appealed MERC's order to the Michigan Court of Appeals. The Court of Appeals dismissed the appeal for lack of jurisdiction. The Michigan Attorney General then appealed to the Michigan Supreme Court, which affirmed the Michigan Court of Appeals' decision. Univ. of Michigan v. Graduate Emps. Org./AFT, ––– Mich. ––––, 807 N.W.2d 714 (Mich.2012). However, after granting reconsideration, MERC suspended its review of GEO's petition because, as explained below, the Michigan Legislature amended PERA to expressly exclude GSRAs from collective bargaining by passing PA 45. See Interv.'s Br. at 8 (Dkt. 32); Defs.' Resp. Br. at 5 (Dkt. 39).

B. House Bill 4246

In February 2011, the Michigan House of Representative passed House Bill (HB) 4246, which required public collective bargaining agreements to include a provision that allowed emergency managers to reject, modify, or terminate those agreements. 2/23/11 House Journal at 215–216 (Dkt. 34–8). As originally drafted, HB 4246 had the following relevant section:

EACH COLLECTIVE BARGAINING AGREEMENT ENTERED INTO BETWEEN A PUBLIC EMPLOYER AND PUBLIC EMPLOYEES UNDER THIS ACT AFTER THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SUBSECTION SHALL INCLUDE A PROVISION THAT ALLOWS AN EMERGENCY MANAGER APPOINTED UNDER THE LOCAL GOVERNMENT AND SCHOOL DISTRICT FISCAL ACCOUNTABILITY ACT TO REJECT, MODIFY, OR TERMINATE THE COLLECTIVE BARGAINING AGREEMENT AS PROVIDED IN THE LOCAL GOVERNMENT AND SCHOOL DISTRICT FISCAL ACCOUNTABILITY ACT.

HB 4246 at 5 (Dkt. 35–11). After passage, the House sent HB 4246 to the Senate.

This version of HB 4246 was not considered by the Michigan Senate. Instead, Senate Bill (SB) 158, which included nearly identical language, was passed by the Michigan Senate and the Michigan House of Representatives, and signed into law by Governor Rick Snyder on March 16, 2011 as Public Act 9. Enrolled Senate Bill 158 (Dkt. 34–9).

Almost a year later, on March 7, 2012, the Senate took up HB 4246, and substituted the language in it with the language from another bill, SB 971, which excluded GSRAs from the definition of “public employee.” 3/7/12 Senate Journal at 327 (Dkt. 34–16); HB 4246 history at 2 (Dkt. 34–17). The substitute text of HB 4246 stated, in pertinent part:

AN INDIVIDUAL SERVING AS A GRADUATE STUDENT RESEARCH ASSISTANT OR IN AN EQUIVALENT POSITION AND ANY INDIVIDUAL WHOSE POSITION DOES NOT HAVE SUFFICIENT INDICIA OF AN EMPLOYER–EMPLOYEE RELATIONSHIP USING THE 20–FACTOR TEST ANNOUNCED BY THE INTERNAL REVENUE SERVICE OF THE UNITED STATES DEPARTMENT OF TREASURY IN REVENUE RULING 87–41, 1987–1 C.B. 296 IS NOT A PUBLIC EMPLOYEE ENTITLED TO REPRESENTATION OR COLLECTIVE BARGAINING RIGHTS UNDER THIS ACT.

HB 4246, as passed by the Senate on 3/7/12, at 3 (Dkt. 35–13). ³

During the passage of HB 4246, Senator Gretchen Whitmer raised a point of order that HB 4246, as amended, represented an unconstitutional change of purpose. 3/7/12 Senate Journal at 327 (Dkt. 34–16). The President pro tempore of the Michigan Senate, Senator Tonya Schuitmaker, ruled that HB 4246 was constitutional because the bill was a “multisection bill, it is not a change of purpose, and the bill as introduced is still in this bill.” Id. The President of the Senate, Lieutenant Governor Brian Calley, clarified Senator Schuitmaker's ruling and made his own ruling, stating that HB 4246 did not violate the Michigan Constitution because HB 4246 was “a multisection PERA bill” and that the original version of the bill and the revised version of the bill both made changes to Sections 1 and 15. Id. at 328.⁴ According to Lieutenant Governor Calley, both sections addressed “the same original purpose of regulating collective bargaining.” Id.

After the passage of HB 4246, the Senate held a roll call vote to give the bill immediate effect. Id. at 330. Thereafter, the Senate Journal reflects protests made by various Michigan Senators. In particular, Senator Whitmer highlighted her belief that “there was nothing ... before the Senate that was in House Bill No. 4246 when it was introduced.” Id. at 331. Senator Whitmer further emphasized that the Senate can “not just ram things through by entirely replacing bills with new content.” Id. Senator Whitmer stated that the version of HB 4246 violated the Michigan Constitution, but the Senate nevertheless passed the legislation. Id.

After passage of amended HB 4246 by the Michigan Senate, the bill returned to the House. HB 4246 history at 2 (Dkt. 34–17). The House then passed amended HB 4246. Id. The bill was signed into law by the Governor on March 13, 2012 as PA 45. Id.

C. Procedural Background of the Instant Case

Plaintiffs filed suit a month after PA 45 became law, naming the commissioners of MERC in their official capacities as Defendants. Compl. (Dkt. 1). Initiating Plaintiffs' complaint contains two counts: an alleged violation of the equal protection clause of the Fourteenth Amendment to the U.S. Constitution (Count I) and an alleged violation of the title-object clause of the Michigan Constitution (Count II).

Intervenor filed its intervening complaint (Dkt. 12) soon afterward, upon stipulation of the parties (Dkt. 10), against the same Defendants. The intervening complaint originally alleged four counts: (i) violation of the equal protection clause of the Fourteenth Amendment of the U.S. Constitution; (ii) violation of the equal protection clause of Michigan's Constitution; (iii) violation of the change-of-purpose clause of the title-object provision of Michigan's Constitution; and (iv) violation of the “immediate effect” clause of Michigan's Constitution. After the filing of the intervening complaint, the parties stipulated to the dismissal of the “immediate effect” claim of the intervening complaint. 1/28/13 Order (Dkt. 22).

III. SUMMARY...